In a new global report from KPMG, 57 percent of financial institutions say Fintech is the greatest source of disruption yet only 46 percent have a Fintech strategy in place*.
London, 18 October, 2017 - As emerging technologies disrupt traditional financial services, many institutions are lacking effective strategies, according to a new report from KPMG, Forging the future.
The report finds that only 46 percent of financial services institutions have a clear fintech strategy in place and worryingly less than half of those believe their strategy is well aligned with the challenges posed by fintech. Forty two percent of firms have a strategy under development and 10 percent have no fintech strategy at all.
“We’re seeing many financial institutions continue to struggle to build and execute a comprehensive strategy around fintech, explains Murray Raisbeck, Global Co-Leader of Fintech, KPMG International. “ In many cases, fintech innovation is left to individual functional areas, without any kind of overarching strategy across the organisation.”
Partnering is driving fintech activity with 81 percent of firms planning to build partnerships in the next 12 months. Over 70 percent of respondents ranked ‘enhancing customer service’ as a top objective for their fintech strategy.
Jon Holt, Head of Financial Services, KPMG UK, adds: “As customers our definition of convenient has shifted: we expect things in an instant and to be at the tips of our fingers 24/7. Financial services firms are no longer just competing with one another, they have to deliver the type of positive customer experience delivered by other sectors such as retail and this is a major challenge for a sector which has grown-up with infrequent and often indirect customer interaction. For me, one of the most interesting findings in today’s report is that 78 percent of firms say their fintech strategy includes partnering with other large non-financial institutions.”
Notes to Editors
For more information, contact:
T : 07789504905
E : Christina.Bridge@KPMG.co.uk
About the report
To better understand how traditional financial institutions, including banks, insurers and asset management companies, view and are approaching the strategic opportunities and challenges presented by fintech, we conducted a survey of executives with more than 160 financial institutions from 36 countries. The report, Forging the future: how financial institutions are embracing fintech to evolve and grow ,also includes insights from in-depth interviews with executives from leading financial institutions as well as KPMG financial services professionals.
About KPMG Fintech
The Financial Services sector is transforming with the emergence of innovative products and solutions. This wave of innovation is primarily driven by changing customer expectations and continued regulatory and cost pressures. KPMG professionals are passionate about supporting clients to successfully navigate this transformation, working directly with emerging fintechs through 30 global fintech hubs. KPMG also brings its global fintech insight to financial institutions, helping them fully realize the potential fintech has to grow their business, meet customer demands, and help them stay relevant and competitive.
About KPMG International
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 152 countries and have more than 189,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.